Ed Balls fails to set out plan for growth

Commenting on Ed Balls’ economic plans in his speech to Labour Conference, Professor Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, said:

1. Bank levy

“The Labour Party seems to view the banking sector as a cash cow. Increasing the banking levy for the purpose of funding new spending commitments will reduce bank lending to both businesses and households. This could severely damage the economy.

“Ed Balls has forgotten the purpose of the banking levy: it was designed to compensate taxpayers for costs imposed on government when banks fail. It should be temporary and not be used to finance new spending programmes.”

2. Childcare

“Labour’s approach to childcare seems to be to push up both costs and subsidies. Rather than increasing taxes to help certain types of families, Ed Balls should look to reduce regulation - including planning regulation - to bring down the cost of childcare rather than calling for yet more taxpayer support.”

3. HS2

“It is good the Labour Party are finally recognising that HS2 represents enormously poor value for money. Ed Balls should commit to scrapping this loss-making project.

“Tens of billions of pounds would be better used to reduce taxes to ease the burden of rising living costs for families nationwide.”

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties.